Hashching creates virtual ID system for first fully-digital loan approvals
Hashching, a website for home buyers to choose mortgage brokers, has built the first fully-digital process for home loan verification in Australia, which would allow banks to comply with strict regulations for identifying clients without having to send them to a branch. This weekend, Hashching, which has processed $2.6 billion of mortgages since launching 15 months ago, will begin the pilot for a biometric identity verification service allowing brokers on its platform to satisfy strict “know your client” (KYC) banking regulations by asking a customer on a video call to hold up a proof of identity to the camera on their computer or mobile phone. Across the banking industry, KYC […]
Fintech finds itself disrupted as forces of consolidation strike
The consultancy industry’s urge to claim brand ownership of fintech in all its different guises is almost as powerful as the rise of fintech itself. McKinsey & Co is the latest example, stating with its usual gravity that fintech is itself maturing and entering a period of rapid change; in other words, the disrupter is now being disrupted. It’s easy to be cynical, but seriously, what would you expect? That said, the global management consultancy has presented some useful data on a number of trends, including valuations, to support its thesis. Examining 44 fintech companies valued at more than $US1 billion, McKinsey found that the spikes in valuation that occurred […]
Fintechs must jump many hurdles on the road to disruption
Bendigo & Adelaide Bank was one of the first Australian banks to invest in fintech start-ups. In 2012, Bendigo announced a $1.5 million investment for a 15 per cent stake in Adelaide-based NoQ, a joint venture with former Adelaide Crows AFL player Brad Moran. These days “NoQ” (no queue) provides independent supermarket and liquor retailers with e-commerce solutions. Bendigo managing director and CEO Mike Hirst has said there are excess profit pools among the diverse product range of the Aussie banks that could be targeted by single product-focused fintechs such as NoQ. Some big investors say the inexorable forces are clear. Successful fintech innovators are cutting costs and improving service. […]
Blockchain adoption in banks coming, but slower than expected
Recent headlines suggest that blockchain technology is revolutionizing financial services. JP Morgan Chase, Barclays, Commonwealth Bank, Wells Fargo and several other leading banks are using the digital ledger technology to conduct equity swaps, cross-border trades, and other transactions. You might think that blockchain has gone mainstream. Not so fast, says former UBS CIO Oliver Bussmann, who claims it may take banks two years to run blockchain in production due to regulatory hurdles, a lack of standards and other stumbling blocks. “This is real, this will come but in a very regulated environment. We will go through a lot of validation,” says Bussmann, who jumpstarted blockchain efforts when he was leading […]
Citi Unveils Global Digital Wallet: Citi Pay
Citibank announced the launch of Citi Pay, a new digital wallet that will provide Citi customers with a simple and fast option for online, in-app and in-store payment needs. Barry Rodrigues, Head of Global Digital Payments at Citi, said the company is uniquely positioned to accelerate payment innovation on a global scale. Citi Pay will be made available to Citi customers for online and in-app purchases. As a digital extension of their current card relationship, Citi customers will be able to make online and in-app purchases using the same Citibank online user ID and password that they currently use to manage their existing online relationship with Citi. The company is […]
Payment giants Ezidebit and eWAY join forces to launch the eWAY Accelerator
Ezidebit and eWAY are delivering another innovative product launching the eWAY Accelerator, a FinTech solution which challenges the banks in the market.
Australia’s banks don’t fear FinTech threat
Australia’s major financial services providers are not worried about the threat posed by emerging financial technology (FinTech) players and believe FinTech will be positive for the industry overall. A survey of financial marketers conducted by Yell Creative found that 98% of marketers believe FinTech is a positive and just 32% think it is a threat. Yell managing director Nigel Roberts said the company predicts that Australian FinTechs will eventually be swallowed up by the larger, more established companies. “While there is a thriving FinTech community in Australia, we feel their impact will likely be more limited than in other global markets,” he said. “Australia has one of the strongest established […]
How ASIC and the Australian government can kindle the fintech boom
Australia is beginning to enjoy the benefits of a fintech boom, but for this emerging industry to grow properly it needs infrastructure support. Without it, we’re at risk of seeing Aussie fintechs left behind as overseas players dominate the Australian and Asian landscape. There have been some welcome initiatives recently, like ASIC introducing a regulatory sandbox for start-ups to trial new ideas. But compared to other governments around the world, Australia doesn’t have the political support to turn this industry into a powerhouse. That’s a huge missed opportunity. Research from Frost & Sullivan predicts the Australian fintech market will add $1 billion in value by 2020. Missing out on this […]
